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GMR Ferro Alloys and Industries
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Just an FYI. :-)
Shock!...
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You can read the full article here:
ww w.i nt.iol.co.za/index.php?set_id=1&click_id=594&art_id=nw20080505133122323C875877
Bottomline: The above news came out on 05th May 2008 and the GMR Ferro acquisition was made soon after. I get a feeling that Cronimet is still looking at setting up a smelter near to the mines in SA and they may not have aggressively plans to develop GMR Ferro. However, GMR Ferro should benefit until the smelter in SA comes up.
Thoughts welcome. Goodluck!
Shock!...
In reply to:
GMR Ferro - Risks!
Posted by :
ShockMarket
Cronimet, infact, is considering a smelter around its SA mines...read on...
===============================
Hamburg - German metals group Cronimet is considering setting up a chrome smelter in South Africa following its purchase of South African chrome mining deposits, CEO Guenter Pilarsky said on Monday.
A consortium headed by Cronimet in late April acquired the mining rights to a substantial chrome ore deposit located in the Western Limb of the Bushfeld geographical complex near Northam in South Africa.
Privately-owned Cronimet plans to start chrome ore mining in 2008 and hopes 2009 ore production will reach 400 000 tons.
\\\\ 
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Cronimet, infact, is considering a smelter around its SA mines...read on...
===============================
Hamburg - German metals group Cronimet is considering setting up a chrome smelter in South Africa following its purchase of South African chrome mining deposits, CEO Guenter Pilarsky said on Monday.
A consortium headed by Cronimet in late April acquired the mining rights to a substantial chrome ore deposit located in the Western Limb of the Bushfeld geographical complex near Northam in South Africa.
Privately-owned Cronimet plans to start chrome ore mining in 2008 and hopes 2009 ore production will reach 400 000 tons.
\\\\...
In reply to:
GMR Ferro - Risks!
Posted by : ShockMarket
Epi, Shoa
What are your comments on the following? I have tried to be as negative as possible to understand the risks in GMR Ferro:
Current status
Capacity - only 27000+ tons
No Captive power
No Captive ores (in India)
We are hoping that the Chrome ore will be imported from their SA mines acquired recently. How fair is our hope? What stops Cronimet from acquiring smelters in other parts of the world where this Chrome ore can be fully utilized? Why only India?
We are assuming that Cronimet will also look to expand the existing facility or acquire new ones in India. Any idea if Cronimet has done it in the past to prove that this is their usual strategy?
Results
How did the EPS jump to 9 for this qtr when the EPS for the last year whole was around 2? Remember, they do not have Captive ore/power.
Cronimet has acquired 70% of GMRF. What if it succeeds in getting another 20% for a low price through open offer? I guess, once it has 90% of holdings it can delist the company? What happens to the other 10% holders? Will they be forced to sell out at whatever rate dictated by Cronimet?
Thanks,
Shock!
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This is reality so I am suggesting to book partial profit at current level. If someone remember Essar steel story that could be repeated in GMR Ferro also. Essar Steel was trading at 85 promoters made open offer at Rs45/share. After that they delisted. Lots of investors even did not get money from Essar group at Rs45/share after delisting also....
In reply to:
GMR Ferro - Risks!
Posted by : ShockMarket
Epi, Shoa
What are your comments on the following? I have tried to be as negative as possible to understand the risks in GMR Ferro:
Current status
Capacity - only 27000+ tons
No Captive power
No Captive ores (in India)
We are hoping that the Chrome ore will be imported from their SA mines acquired recently. How fair is our hope? What stops Cronimet from acquiring smelters in other parts of the world where this Chrome ore can be fully utilized? Why only India?
We are assuming that Cronimet will also look to expand the existing facility or acquire new ones in India. Any idea if Cronimet has done it in the past to prove that this is their usual strategy?
Results
How did the EPS jump to 9 for this qtr when the EPS for the last year whole was around 2? Remember, they do not have Captive ore/power.
Cronimet has acquired 70% of GMRF. What if it succeeds in getting another 20% for a low price through open offer? I guess, once it has 90% of holdings it can delist the company? What happens to the other 10% holders? Will they be forced to sell out at whatever rate dictated by Cronimet?
Thanks,
Shock!
Tracked by: 0 Boarder
1) GVK Power
2) MVL
3) MTNL
4) Petronet LNG
5) GHCL
6) Amara Raja
7) UCO Bank
8)LGB Forge
9)Birla Cotsyn
10)Voltas
11)Nagar Constructions....
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Epi, Shoa
What are your comments on the following? I have tried to be as negative as possible to understand the risks in GMR Ferro:
Current status
Capacity - only 27000+ tons
No Captive power
No Captive ores (in India)
We are hoping that the Chrome ore will be imported from their SA mines acquired recently. How fair is our hope? What stops Cronimet from acquiring smelters in other parts of the world where this Chrome ore can be fully utilized? Why only India?
We are assuming that Cronimet will also look to expand the existing facility or acquire new ones in India. Any idea if Cronimet has done it in the past to prove that this is their usual strategy?
Results
How did the EPS jump to 9 for this qtr when the EPS for the last year whole was around 2? Remember, they do not have Captive ore/power.
Cronimet has acquired 70% of GMRF. What if it succeeds in getting another 20% for a low price through open offer? I guess, once it has 90% of holdings it can delist the company? What happens to the other 10% holders? Will they be forced to sell out at whatever rate dictated by Cronimet?
Thanks,
Shock!...
Tracked by: 0 Boarder
this stock was in upper circuit for the last two weeks(with low volume.).now all of a sudden lacs of shares are traded.someone has offloaded his share.it has not moved recently.it could be a trap for retail investor.remember spice mobile.watch out....
In reply to:
Cronimet Mining Acquisition of GMR Ferro
Posted by :
mukut
I would suggest book partial profit in this stock. Those who have entered at at 32-50 range can book partial profit and keep ramaining for some time.
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I would suggest book partial profit in this stock. Those who have entered at at 32-50 range can book partial profit and keep ramaining for some time....
In reply to:
Cronimet Mining Acquisition of GMR Ferro
Posted by : epiphany
All,
Let's get something straight here. Cronimet is a Germany based mining house and they along with a few Dubai investors have bought out GMR ferro. I view this as a huge plus, given that Cronimet has back in April bought a large Chrome Ore mine in the Bushveld Complex in South Africa.
The Bushveld complex, which is in NE part of South Africa, is home to the largest Chrome complex anywhere in the world and also has large concentration of PGM metal deposits. I like their strategy of acquiring an Indian Chrome company for a cheap, throw away price of Rs.26 per share and I'm sure GMR will be kicking their feet sooner than later. :-). I'm now looking to invest in this company in a big way as I think Cronimet might look at expanding their operations in a bigger way and making more acquisitions in Andhra and Elsewhere.
Read the article below......
----------------------------------------
Karlsruhe, Germany
CRONIMET Acquires Indian FeCr Smelter
Karlsruhe (AR) – CRONIMET Mining GmbH, a company of the CRONIMET Group headquartered in Karlsruhe, and investors from Dubai have acquired 70.5% of the shares of GMR Ferro Alloys and Industries Ltd. from the Indian GMR Group. The remaining 29.5% of the shares remain widely held. The approval of the antitrust authorities has already been received.
Bild zum Artikel: CRONIMET Acquires Indian FeCr Smelter
The acquired company is an important participant in the Indian market in the area of ferrochromium production and will operate in the future under the name CRONIMET Ferro Alloys (India) Ltd. The company is headquartered in Tekkali Mandal (Andhra Pradesh State).
Founded in 1989 and certified in accordance with ISO 9001-2000, the company operates a ferrochromium melting plant. The plant includes two melting furnaces with a capacity of 6 MVA and 9 MVA and has more than 230 employees.
The melting plant produces approximately 27,500 tons of ferrochromium annually. 75% of the output is exported to Europe, China, Japan and Korea.
With this acquisition, the CRONIMET Group continues to expand its successful production business unit and CRONIMET uses this vertical integration to invest forcefully in the expansion of the value added chain in the area of raw material supplies with ferro-alloys for the stainless steel industry.
Under the leadership of the majority owner CRONIMET Mining GmbH, a consortium of German and South-African companies invested in April of this year already in the mining rights for a significant chromium ore deposit in South Africa.
----------------------------------------
Tracked by: 0 Boarder
All,
Let's get something straight here. Cronimet is a Germany based mining house and they along with a few Dubai investors have bought out GMR ferro. I view this as a huge plus, given that Cronimet has back in April bought a large Chrome Ore mine in the Bushveld Complex in South Africa.
The Bushveld complex, which is in NE part of South Africa, is home to the largest Chrome complex anywhere in the world and also has large concentration of PGM metal deposits. I like their strategy of acquiring an Indian Chrome company for a cheap, throw away price of Rs.26 per share and I'm sure GMR will be kicking their feet sooner than later. :-). I'm now looking to invest in this company in a big way as I think Cronimet might look at expanding their operations in a bigger way and making more acquisitions in Andhra and Elsewhere.
Read the article below......
----------------------------------------
Karlsruhe, Germany
CRONIMET Acquires Indian FeCr Smelter
Karlsruhe (AR) – CRONIMET Mining GmbH, a company of the CRONIMET Group headquartered in Karlsruhe, and investors from Dubai have acquired 70.5% of the shares of GMR Ferro Alloys and Industries Ltd. from the Indian GMR Group. The remaining 29.5% of the shares remain widely held. The approval of the antitrust authorities has already been received.
Bild zum Artikel: CRONIMET Acquires Indian FeCr Smelter
The acquired company is an important participant in the Indian market in the area of ferrochromium production and will operate in the future under the name CRONIMET Ferro Alloys (India) Ltd. The company is headquartered in Tekkali Mandal (Andhra Pradesh State).
Founded in 1989 and certified in accordance with ISO 9001-2000, the company operates a ferrochromium melting plant. The plant includes two melting furnaces with a capacity of 6 MVA and 9 MVA and has more than 230 employees.
The melting plant produces approximately 27,500 tons of ferrochromium annually. 75% of the output is exported to Europe, China, Japan and Korea.
With this acquisition, the CRONIMET Group continues to expand its successful production business unit and CRONIMET uses this vertical integration to invest forcefully in the expansion of the value added chain in the area of raw material supplies with ferro-alloys for the stainless steel industry.
Under the leadership of the majority owner CRONIMET Mining GmbH, a consortium of German and South-African companies invested in April of this year already in the mining rights for a significant chromium ore deposit in South Africa.
----------------------------------------...
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The deal for sale took place after the company was de-merged from GMR Industries and before it was listed. Hence, it did not figure in the NSE/BSE announcements.
It is really a surprise as to why the GMR group sold it at a low price of Rs. 26.04 to Cronimet. Maybe they got demoralised when after being allotted chrome mines in Orissa the allotment was cancelled by Supreme Court. They may have wanted to exit the company quickly and use the proceeds elsewhere. The fact remains that the open offer to investors will be at Rs. 26.04.
The company has reported a quarterly EPS of Rs.9.91 (Rs.39.64 annualised. If the present performance can be maintained, the share remains a good buy. The open offer at Rs. 26.04 should come out soon and should not much of a response when the share price is already so high and likely to rule this high....
In reply to:
GMR sells ferro alloys biz to Dubai-based
Posted by : mukut
This news is not announced at NSE/BSE for investors so far. If this is confirmed than why promoters sold their stack such low prices? Such movement by promoters for investors is very bad and Promoters will lose their credibility, confidence and trust among share holders for not only this company but other group companies like GMR Industry, GMR Infra etc.
Tracked by: 0 Boarder
This news is not announced at NSE/BSE for investors so far. If this is confirmed than why promoters sold their stack such low prices? Such movement by promoters for investors is very bad and Promoters will lose their credibility, confidence and trust among share holders for not only this company but other group companies like GMR Industry, GMR Infra etc....
In reply to:
GMR sells ferro alloys biz to Dubai-based
Posted by :
irfan_10
Hyderabad: The Bangalore based GMR Group with interests in several infrastructure businesses such as airports, energy and highways has sold its ferro alloys business to the Dubai-based Cronimet Mercon Invest Ltd (CMIL) for Rs22.55 crore.
GMR Group founder and chairman G.M. Rao (Photo by: K. Sudheer / Mint)
GMR Group founder and chairman G.M. Rao (Photo by: K. Sudheer / Mint)
The promoters of GMR signed a share purchase agreement with Cronimet on Monday to sell almost their entire holding in GMR Ferro Alloys and Industries Ltd (GFAIL). According to the details of this agreement submitted to Indian stock market regulator Securities and Exchange Board of India, or Sebi, the GMR group’s promoters are selling 86.57 lakh shares out of the 87.08 lakh shares they hold in the ferro alloys company. The Dubai entity has agreed to pay Rs26.04 per share to the GMR promoters and will come out with an open offer to the shareholders of GFAIL to acquire 20% holding from them at the same price of Rs26.04 a share in keeping with Indian stock market laws.
The ferro alloys company was created by GMR Industries Ltd (GMRIL) by spinning off its metallurgical division in April 2006. GFAIL has a high carbon ferro-chrome manufacturing facility located at Tekkali in Srikakulam district of Andhra Pradesh.
“The GMR group encountered some issues in scalability of metallurgical business and could not succeed in acquiring captive chrome mines,” said GFAIL executive director U. Naresh Kumar who added that the business was not one the group wanted to be in. The company had initially been allotted chrome mines in Orissa but this allotment was cancelled after a Supreme Court ruling. “Taking this into account, GMR had demerged the metallurgical division of GMRIL into GFAIL, which is now being acquired by the Dubai company,” said Naresh Kumar.
Shares of GFAIL are in the process of being listed on the same stock exchanges in India on which the shares of GMRIL are listed including the Bombay Stock Exchange and the National Stock Exchange. The Dubai group is going ahead with the acquisition and open offer since the eventual listing of GFAIL is a mere technicality.
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Hyderabad: The Bangalore based GMR Group with interests in several infrastructure businesses such as airports, energy and highways has sold its ferro alloys business to the Dubai-based Cronimet Mercon Invest Ltd (CMIL) for Rs22.55 crore.
GMR Group founder and chairman G.M. Rao (Photo by: K. Sudheer / Mint)
GMR Group founder and chairman G.M. Rao (Photo by: K. Sudheer / Mint)
The promoters of GMR signed a share purchase agreement with Cronimet on Monday to sell almost their entire holding in GMR Ferro Alloys and Industries Ltd (GFAIL). According to the details of this agreement submitted to Indian stock market regulator Securities and Exchange Board of India, or Sebi, the GMR group’s promoters are selling 86.57 lakh shares out of the 87.08 lakh shares they hold in the ferro alloys company. The Dubai entity has agreed to pay Rs26.04 per share to the GMR promoters and will come out with an open offer to the shareholders of GFAIL to acquire 20% holding from them at the same price of Rs26.04 a share in keeping with Indian stock market laws.
The ferro alloys company was created by GMR Industries Ltd (GMRIL) by spinning off its metallurgical division in April 2006. GFAIL has a high carbon ferro-chrome manufacturing facility located at Tekkali in Srikakulam district of Andhra Pradesh.
“The GMR group encountered some issues in scalability of metallurgical business and could not succeed in acquiring captive chrome mines,” said GFAIL executive director U. Naresh Kumar who added that the business was not one the group wanted to be in. The company had initially been allotted chrome mines in Orissa but this allotment was cancelled after a Supreme Court ruling. “Taking this into account, GMR had demerged the metallurgical division of GMRIL into GFAIL, which is now being acquired by the Dubai company,” said Naresh Kumar.
Shares of GFAIL are in the process of being listed on the same stock exchanges in India on which the shares of GMRIL are listed including the Bombay Stock Exchange and the National Stock Exchange. The Dubai group is going ahead with the acquisition and open offer since the eventual listing of GFAIL is a mere technicality....
Circuit Break
Posted by : GuestTracked by: 0 Boarder
Mukut,
Check the following web site: ***.livemint.***/2008/05/30002724/GMR-sells-ferro-alloys-biz-to.html?d=1, the price of 26rs is quoted, based on last years earnings. Let me know what you think, it is scary!
Kumar...
In reply to:
Circuit Break
Posted by : mukut
Hi Kumar, I have gone through the news of GMR Ferro alloys stack sell to German ad UAE based group Crominet. Crominet acquired 70.5% stack in GMR Ferro as per expansion global plan Crominet has strong presence in Europer, China, Japan, South Korea and Europe. Price is not disclosed but my gues is that deal happen at good price. There are possibility of open offer to GMR Ferro public share holders from crominet soon to make it 100% subsidary of Crominet. If Crominte keeps 70.5% holding and don't want to go for open offer then GMR Ferro will enjoy crominet business network to further grow much faster. I hope Crominet don't go for open offer, so GMR ferro retail investors can benefit through acqusition in long term.
Circuit Break
Posted by : mukutTracked by: 0 Boarder
Hi Kumar, I have gone through the news of GMR Ferro alloys stack sell to German ad UAE based group Crominet. Crominet acquired 70.5% stack in GMR Ferro as per expansion global plan Crominet has strong presence in Europer, China, Japan, South Korea and Europe. Price is not disclosed but my gues is that deal happen at good price. There are possibility of open offer to GMR Ferro public share holders from crominet soon to make it 100% subsidary of Crominet. If Crominte keeps 70.5% holding and don't want to go for open offer then GMR Ferro will enjoy crominet business network to further grow much faster. I hope Crominet don't go for open offer, so GMR ferro retail investors can benefit through acqusition in long term....
In reply to:
Circuit Break
Posted by : Guest
Mukut,
Check their web site or type GMR ferro news on google for the report on GMRFER selling their stake.
Kumar
Circuit Break
Posted by : mukutTracked by: 0 Boarder
Whatever sell of the shares or at any price. Based on q1 EPS it will reach 250-300. However people can book profit around 200 those who have entered at 40-50 range. But At 200 and annual EPS of 55 It will trade at PE of 3 where as other peer companies trading at PE of 10-15 range. So I don\\`t think people should think of Below 200 in any worst case. It is moving with upper circuit since last 15day. It could achieve 200 if 5% circuit limit is not there....
In reply to:
Circuit Break
Posted by : Guest
this company is in safe hands and with aggrasive growth plans.keep on holding and enjoy the benefits.
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